Nifty is very much on course to achieve the below mentioned target. The trend is extremely strong and it is not advisable to fight the trend. Instead use the shallow dips(70-80 pts) to accumulate long position with stoploss placed at 7750. Its only a matter of time before Nifty surges past 8000. Bankex will play a pivotal role in pushing the benchmark indices higher.
PraDa
2nd August 2014, 12:42 PM
Re: Day trading NF/BNF/USDINR Futures
Market Outlook:
With so many bears voicing their opinions on TV, both global and domestic, I happened to analyse the markets to see if their voices carry any weight. To me, personally it looks like another routine correction before newer highs come up.
Nifty has had a decent run up from 7400 odd levels to test 7840 and ever since has retraced almost 61.8% of its move. This to me is significant in the present scenario. Going forward, if it manages to hold 7500 on a closing basis, we will see 8200 odd levels within the next couple of months. Hence risk:reward looks extremely favourable from the long side. Bears need to wait a little longer for a more meaningful correction, which IMO is likely to turn out in the month of October. Bank Nifty which has led the run up from the front, has held out quite well and clung onto the 15000 mark very nicely. Going forward, I expect a significant move in the banking sector especially PSU ones which can take the index to 17000 odd mark. Not to miss out on the midcap index which has been consolidating well is once again expected to outperform going forward.
With the global markets nearing a short term bottom( expected next week), the environment is once again looking quite conducive for another leg of a strong bull rally moving into the month of August. We should see these moves panning out in the next couple of months and bears need to exercise extreme caution in shorting this market at current levels.
Have a wonderful trading week ahead!
PraDa